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What is SAP Transformation?

Published Date
Author Team Copado

Individual discovers what is SAP transformation

 

In the future, artificial intelligence (AI), machine learning, Internet of Things (IoT) networks, advanced analytics, and robotics will be critical for companies to stay competitive in the digital economy. These innovations will completely change the way companies interact with their customers.

Because of this, digital transformation is a vital component of any company's transformation strategy, and it will almost certainly be required for continued success. With advanced technologies, your company will remain flexible enough to drive performance levels, react to fast-changing markets, and build increasingly customer-centric processes.

When a company decides to implement an SAP transformation, it may be looking to modernize internal processes, strategically restructure itself, introduce innovation to reduce IT debt, etc. To better understand a company’s SAP transformation, we’ll discuss its various forms.

First, we'll discuss SAP transformation in the context of S/4HANA migration. After that, we'll look at the term regarding digital and business transformation. Finally, we'll reveal how testing is found at the center of all digital transformations to ensure the quality and availability of end-to-end business processes.
 

"Digital transformation is a fundamental rethinking of customer experience, business models, and operations. It’s about finding new ways to deliver value, generate revenue, and improve efficiency.” - SAP Insights

 

What is SAP Transformation?

An SAP transformation involves a migration process that ensures a company’s legacy data is converted into a usable format for a new SAP platform, ex. S/4 HANA. Migration should adhere to current SAP standards to ensure quality, usability, and availability. 

There are several ways to migrate to the S/4HANA enterprise resource planning (ERP) platform. This process will depend on which implementation plan and system migration suit an organization. Consider the following options:

 

New Implementation (greenfield)

Customers who want to use SAP S/4HANA to reengineer their processes and revert to standard functionality and industry best practices should take this approach.

Begin with a new SAP S/4HANA rollout and move data from your legacy ERP systems.

System Conversion (brownfield)

A brownfield approach transfers any SAP ECC 6. x system operating on any database to SAP S/4HANA while retaining your existing configuration, customization, and historical data and is typically the quickest option.

This method allows for rapid technical conversion while progressively introducing new features for customers.

Selective Data Transition

This method allows for a tailored scope between system conversion and new implementation and the ability to adapt data and processes in a single step.

It can modernize landscape and architecture and big bang approaches and rollouts (e.g., ERP consolidations or moving to cloud applications).

 

The SAP Digital Transformation methodology will provide an end-to-end digital IT architecture that allows you to expand your platform for the use of advanced and innovative technologies. This architecture is built on the next-generation unified platform, SAP S/4HANA, which is enterprise ready, agile, and fully integrates front-end and back-end operations through a solid digital core.

However, the SAP transformation process does not focus on the migration process or IT solution alone but as an opportunity to help customers, businesses, and industries align with the future. The transformation will require cultural changes to address the significant technological shift in a business model. 

Corporate strategy, management practices, organizational structure, and employee roles and responsibilities will be affected by this digital transformation. Above and beyond a new IT landscape and its basic requirements, all employees, managers and executives will need to understand what SAP transformation means.

An SAP transformation involves integrating innovative digitalization solutions into every area of a business. Companies who prepare for and adapt to these changes over time will achieve the full potential of this ERP platform.

Benefits of SAP Transformation

Every level and function of a modern business will be affected by an SAP transformation, as intelligent technologies allow businesses to advance and thrive. An SAP transformation will likely result in the following benefits:

  • Using advanced analytics to support real-time decisions: Businesses can access real-time data and customize powerful analysis algorithms with a modern ERP system powered by advanced analytics to make good decisions in the moment.
  • Improving efficiency and productivity: Data, machine logs, and performance reports are constantly transmitted by IoT devices and machines. This data can be used to enable predictive maintenance, reduce downtime, and provide insights for more productive and efficient workflows using advanced analytics.
  • Enhancing the customer experience: Every customer wants their requirements to be met on their timeline. Personalization, omnichannel access, customized service plans, and real-time data access can help you meet fast-changing expectations while increasing loyalty and retention. 
  • Driving business model innovation: An SAP transformation enables the collection and analysis of real-time data and the development of automated and intelligent processes for managing new business, payment, and service models.

Why Is Testing Essential for Digital Transformations?

All SAP transformation projects require extensive testing. Unfortunately, when testing time is limited or a project is delayed, testing is likely to be overlooked entirely. Further, QA teams may be left to inefficient testing methods, time-consuming manual testing, and significantly reduced test coverage, resulting in a low-quality release. 

When transformations go live, they can produce unanticipated issues. Because of this, testing early and throughout the development process is necessary to ensure the best results. 

An SAP transformation of your business processes should include several types of testing, including end-to-end validations. Copado Robotic Testing leverages self-healing AI and automation to increase test coverage and make testing multiple system connections easier.

Copado Testing Solutions for SAP Transformation

To achieve the best results, testing is essential throughout an SAP transformation process. SAP environments are highly customized, making running end-to-end business process tests across multiple custom clouds, systems, and applications difficult.

Copado Robotic Testing automated testing solutions can help ensure a seamless transition on your S/4 HANA journey.